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The downtrend in the stock market comes amid reports of Paytm’s Postpaid facility experiencing issues since November 30, according to social media posts. The Economic Times has associated these disruptions with a cautious approach taken by Paytm’s NBFC partners following a recent decision by the Reserve Bank of India (RBI) to increase the risk weightage for unsecured loans by 25%. This regulatory change has led to one of Paytm’s key NBFC partners ending their partnership.
In response to these developments, Paytm issued a statement via a stock exchange filing, clarifying that while the Postpaid service is temporarily unavailable for several customers, it is not being permanently discontinued. Instead, Paytm is adjusting its loan distribution strategy in response to the RBI’s regulatory guidance.
The company is shifting its focus towards less risky portfolios by de-emphasizing small Postpaid loans and expanding its offerings of higher-ticket personal and merchant loans. These efforts are being made in collaboration with leading banks and NBFCs, aiming to target customers who present lower risk profiles. Paytm also emphasized that merchant loans continue to be a key focus area as they are less impacted by the recent changes in regulatory guidance.
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